3rd pleads guilty in Medicaid fraud scheme

Rodnisha Sade Cannon

By Alicia Banks

Published: Wednesday, April 3, 2013 at 10:43 PM.

A woman pleaded guilty to spearheading a scheme that involved a Shelby business and defrauded the Medicaid system of millions of dollars. Rodnisha Sade Cannon, 26, of Charlotte, pleaded guilty to stealing a therapist’s identity to commit the fraud and money laundering conspiracy that totaled $4.8 million, according to a press release from the U.S. Department of Justice’s NC Western District office. Cannon also admitted in federal court she used funds from the scheme to purchase a Mercedez-Benz CLS550 worth more than $59,000. Cannon tried to sell the luxury vehicle when she learned agents obtained warrants for its seizure. “Stealing money from Medicaid degrades the integrity of our health care system and victimizes those who rely on this important health care program for legitimate patient care,” NC Western District U.S. Attorney Anne Tompkins said. “The money that Cannon stole through her health care fraud scheme was intended to cover patient needs, not to purchase luxury items. Cannon will be held accountable for her actions.” Cannon and co-conspirators operated A Chance for Change Inc. in Shelby and 2nd Chances New Beginnings LLC in Gastonia. Both advertised after-school and summer program services focused on mental and behavioral health services. Cannon and others redirected Medicaid payments from providers’ bank accounts into accounts controlled by Cannon and others, according to the US Attorney’s Office. She wasn’t licensed or approved by Medicaid to provide the services, which in many cases weren’t provided at all.

Others charged Cannon’s Medicaid fraud case is one of three connected to Cleveland County. Victoria Brewton pleaded guilty to her involvement in a scheme in January. Officials say Brewton carried out the scheme with Linda Radeker, a Shelby woman and wife of former assistant district attorney and former judge candidate Gwynn G. Radeker. Linda Radeker allegedly rented out her Medicaid provider number so that others could bill Medicaid for non-existent or unqualified services. She also oversaw a network of co-conspirators in Cleveland and Gaston counties in the multi-million-dollar fraud scheme separate but related to Cannon’s scheme. Radeker pleaded guilty in September 2012 to her involvement in the scheme. Court documents say Cannon worked with Brewton and both provided Medicaid beneficiary identification numbers and information in Brewton’s scheme. Records of Brewton and Radeker’s fraud case extend from 2008 to 2012, The Star previously reported. Sentencing dates for Brewton and Radeker still haven’t been scheduled, according to the US Attorney’s Office.

Prison time? Officials booked Cannon into the Mecklenburg County jail Sept. 28, 2012. Cannon agreed to pay full restitution to Medicaid for any losses from the scheme, which could be as little as $1 million, according to the US Attorney’s Office. She faces a mandatory two years in prison and an additional 25 years in prison related to the aggravated identity theft, health care fraud, money laundering and attempted removal of property to prevent seizure charges. A sentencing hearing for Cannon hasn’t yet been scheduled.

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A woman pleaded guilty to spearheading a scheme that involved a Shelby business and defrauded the Medicaid system of millions of dollars.
Rodnisha Sade Cannon, 26, of Charlotte, pleaded guilty to stealing a therapist’s identity to commit the fraud and money laundering conspiracy that totaled $4.8 million, according to a press release from the U.S. Department of Justice’s NC Western District office.
Cannon also admitted in federal court she used funds from the scheme to purchase a Mercedez-Benz CLS550 worth more than $59,000. Cannon tried to sell the luxury vehicle when she learned agents obtained warrants for its seizure.
“Stealing money from Medicaid degrades the integrity of our health care system and victimizes those who rely on this important health care program for legitimate patient care,” NC Western District U.S. Attorney Anne Tompkins said. “The money that Cannon stole through her health care fraud scheme was intended to cover patient needs, not to purchase luxury items. Cannon will be held accountable for her actions.”
Cannon and co-conspirators operated A Chance for Change Inc. in Shelby and 2nd Chances New Beginnings LLC in Gastonia.
Both advertised after-school and summer program services focused on mental and behavioral health services.
Cannon and others redirected Medicaid payments from providers’ bank accounts into accounts controlled by Cannon and others, according to the US Attorney’s Office. She wasn’t licensed or approved by Medicaid to provide the services, which in many cases weren’t provided at all.

Others charged
Cannon’s Medicaid fraud case is one of three connected to Cleveland County.
Victoria Brewton pleaded guilty to her involvement in a scheme in January. Officials say Brewton carried out the scheme with Linda Radeker, a Shelby woman and wife of former assistant district attorney and former judge candidate Gwynn G. Radeker.
Linda Radeker allegedly rented out her Medicaid provider number so that others could bill Medicaid for non-existent or unqualified services. She also oversaw a network of co-conspirators in Cleveland and Gaston counties in the multi-million-dollar fraud scheme separate but related to Cannon’s scheme.
Radeker pleaded guilty in September 2012 to her involvement in the scheme.
Court documents say Cannon worked with Brewton and both provided Medicaid beneficiary identification numbers and information in Brewton’s scheme.
Records of Brewton and Radeker’s fraud case extend from 2008 to 2012, The Star previously reported.
Sentencing dates for Brewton and Radeker still haven’t been scheduled, according to the US Attorney’s Office.

Prison time?
Officials booked Cannon into the Mecklenburg County jail Sept. 28, 2012. Cannon agreed to pay full restitution to Medicaid for any losses from the scheme, which could be as little as $1 million, according to the US Attorney’s Office.
She faces a mandatory two years in prison and an additional 25 years in prison related to the aggravated identity theft, health care fraud, money laundering and attempted removal of property to prevent seizure charges.
A sentencing hearing for Cannon hasn’t yet been scheduled.